Dragonfly Energy SPAC Presentation Deck
Risk Considerations (2/5)
Risks Related to Dragonfly's Solid State Technology Development
We face significant engineering challenges in our attempts to develop and manufacture solid state battery cells and these efforts may be delayed or fail which could negatively
impact our business.
We expect to make significant investments in our continued research and development of solid state battery technology development, and we may be unable to adequately
control the costs associated with manufacturing our solid state battery cells.
If our solid state batteries fail to perform as expected, our ability to further develop, market, and sell our solid state batteries could be harmed.
We expect to rely on machinery used in other large-scale commercial applications, modified to incorporate our proprietary technologies and processes, in order to mass
produce solid state battery cells, which exposes us to a significant degree of risk and uncertainty in terms of scaling production, operational performance and costs.
Risks Related to Intellectual Property
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We rely heavily upon our intellectual property portfolio. If we are unable to protect our intellectual property rights, our business and competitive position would be harmed.
We may need to defend ourselves against intellectual property infringement claims, which may be time-consuming and could cause us to incur substantial costs.
Our current and future patent applications may not result in issued patents or our patent rights may be contested, circumvented, invalidated or limited in scope, any of which
could have a material adverse effect on our ability to prevent others from commercially exploiting products similar to ours.
General Risk Factors
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dragonfly
ENERGY
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The uncertainty in global economic conditions, including as a result of the COVID-19 pandemic and the Russia-Ukraine conflict, could negatively affect our results of operations.
Currency fluctuations, trade barriers, tariffs or shortages and other general economic or political conditions may limit our ability to obtain key components for our battery packs
or significantly increase freight charges, raw material costs and other expenses associated with our business, which could further materially and adversely affect our financial
condition and results of operations.
The loss of one or more members of our senior management team, other key personnel or our failure to attract additional qualified personnel may adversely affect our business
and our ability to achieve our anticipated level of growth.
Our operating and financial results forecast relies in large part upon assumptions and analyses developed by us. If these assumptions or analyses prove to be incorrect, our
actual operating results may be materially different from our forecasted results.
Our website, systems, and the data we maintain may be subject to intentional disruption, security incidents, or alleged violations of laws, regulations, or other obligations
relating to data handling that could result in liability and adversely impact our reputation and future sales.
If we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of customer service, or adequately address competitive
challenges.
We may expand our business through acquisitions in the future, and any future acquisition may not be accretive and may negatively affect our business.
Our operations are subject to a variety of environmental, health and safety rules that can bring scrutiny from regulatory agencies and increase our costs.
We are subject to anti-corruption, anti-bribery, anti-money laundering, financial and economic sanctions and similar laws, and non-compliance with such laws can subject us to
administrative, civil and criminal fines and penalties, collateral consequences, remedial measures and legal expenses, all of which could adversely affect our business, results of
operations, financial condition and reputation.
From time to time, we may be involved in legal proceedings and commercial or contractual disputes, which could have an adverse impact on our profitability and consolidated
financial position.
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